Festi hf. - Changes board/management/auditors

Festi hf.: Festi's acquisition of the entire share capital of Lyfja hf. completed - change to Festi's executive management

Today, payment of the purchase price for the entire share capital of Lyfja hf. to the seller was completed and the company has thereby become part of the Festi Group. As previously announced, Festi signed an agreement for the acquisition of the entire share capital of Lyfja hf. on July 13, 2023. On June 14, 2024, Festi and the Icelandic Competition Authority reached a settlement regarding the purchase, which was the final contingency for the acquisition of Lyfja. The reference closing date for the acquisition is July 1, 2024, and Lyfja will therefore be included in Festi's consolidated financial statements as of that date.

The purchase price for the acquisition amounted to ISK. 7,116 million, based on the company's preliminary financial statements, which is divided into a cash payment in the amount of ISK 5,076 million and the delivery of 10 million shares in Festi with a market value of ISK 2,040 million based on the closing price of 204 on Nasdaq Iceland on July 10, 2024, respectively. The final purchase price could change slightly when Lyfja's final results for the first six months of 2024 are known, which is expected to be before the end of July.

Today, Festi took out a new loan for the acquisition, which will increase the Group's leverage by ISK 4,000 million. Further details about the transaction and its financing will be provided in connection with the publication of the Company's 2nd quarter results on July 31.

Concurrently with today's completion of the acquisition, Hildur Þórisdóttir, acting CEO and managing director of Lyfja's human resources department, has joined Festi's executive management.

Ásta S. Fjeldsted, CEO of Festi:  

"This is a major moment and an important milestone on Festi's journey. The finalisation of the merger has taken some time, but this has been a learning process that lays a solid foundation for future cooperation within the Group. There are very exciting times ahead and a number of opportunities for cooperation, synergy, increased efficiency and growth across the companies within the Group, which represent some of the strongest brands in Iceland in their respective markets. Lyfja possesses highly trained and well-educated staff who have built one of the largest drug store chains in Iceland. Aided by a united, experienced and talented team of employees, we will provide consumers and businesses in Iceland with a wide but targeted selection of essential products at the best prices. App and online sales, along with our well-located service centers and stores throughout Iceland, will play a key role in this effort. At the same time, emphasis will be placed on promoting improved public health in Iceland through quality products, education, consultancy and other health services as opportunities arise. These are all things that that are going to be more and more important, with the increase in the population and rising life expectancy."  

Hildur Þórisdóttir, acting CEO and managing director of Lyfja's human resources department:  

"Lyfja has been on an extensive journey with the goal of extending and increasing the quality of life of Icelanders. We do this through innovation, education and preventive solutions as well as by providing professional pharmaceutical advice throughout the country. At Lyfja, we are very excited about the future and look forward to further improving our services to our customers with a strong and forward-looking focus.”  

For more information, please contact Ásta S. Fjeldsted, CEO of Festi – asta@festi.is